Acca aaa s21 Notes

September 2021 to June 2022 exams
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4. Reporting on performance information
In some countries, including the UK, reports on performance information are generally included 
within the report on the financial results of the government or other department. The audit may also 
be carried out by a government auditor (literally auditors employed by the government in effectively 
an internal audit role) using specific government reporting standards. This means that care must be 
used in interpreting the reports partly due to possible bias (no truly independent report) and lack of 
knowledge of the different reporting standards used. In terms of non-financial performance 
information there may not be any reporting standard anyway, potentially making the report even 
more subjective. 
A typical report is summarised below. 
If you remember the basic elements of an auditor's report (ISA 700), most of the sections of a report 
on performance information can at least be “guessed”.
Section of report
Content
Implication for auditors
Title and addressee
Indicates that it is an 
independent assurance report 
and to whom it is addressed – 
in this case normally the 
members of the government 
department.
Subject matter information 
and applicable criteria
Identifies what has been 
audited and the standards 
used. In many countries there 
will be a specific financial 
reporting framework for 
government departments.
The auditor will need to 
understand the financial 
reporting framework.
The auditor will also state clearly 
what information has been 
audited, normally be identifying 
the page numbers in the report 
where the performance 
information is shown.
Relative responsibilities
The report states, for example, 
that the chief financial officer 
prepares the report and the 
auditor audits the information 
in that report.
Summary of work 
performed
In the absence of a more 
specific ISAE, ISAE 3000 
applies. The summary must 
convey how, based on the 
procedures performed, the 
auditor may detect material 
misstatement.
This summary is likely to be more 
detailed for a limited assurance 
engagement than a reasonable 
assurance engagement in order 
to convey the limitations on the 
nature, timing and extent of 
procedures.